TMI Blog2014 (3) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ount is included in Form No. 26AS the CIT(A) is not proper to hold that the assessee received the amount from M/s. Jana Chaitanya Housing Ltd., and paid to the landlords and the assessee acted only as an agent - It is the mobilisation advance given to the assessee which is liable for TDS towards land development expenditure - When the assessee undertakes the land development, it cannot be said that the assessee carried out the work without element of profit - as it is a regular work carried on by the assessee, applying net profit rate as adopted by the assessee on regular trading receipts, the AO is directed to adopt 25% of the receipt as income of the assessee – Decided partly in favour of Revenue. - ITA No. 993/Hyd/2011 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71,766 which was used for payment to the landlords. However, it remains that the assessee has not explained the sources from whom he had received Rs. 1,71,766 and the purpose for which it was received. In the absence of source and nature of expenditure, we are inclined to hold that the said receipt is to be considered as trading receipt and income on this is to be estimated, as the assessee estimated on other receipts, at 25%. Accordingly, this ground of the Revenue is partly allowed. 6. The next ground of the Revenue is that the CIT(A) ought to have sustained the addition of Rs. 20,00,000 made u/s. 69A of the Act, as this represents the amount received by the assessee from M/s. Jana Chaitanya Housing Ltd., on 3.8.2006 which is not decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learly indicated that the cheques for Rs. 20 lakhs in 26AS are the same which were explained earlier. In support of the claim, the assessee had filed copies of the bank account statement, confirmation letters of Shri. P. Ramulu and Shri. P. Laxmaiah in token of receipt of amount and a letter dated 08.01.2010 from M/s. Jana Chaitanva Housing (P) Ltd., certifying the payment through cheques for Rs. 10 lakhs each which match with the details of bank account statement. It was submitted by the assessee that whatever papers he had received in respect of filing of return from M/s. Jana Chaitanya Housing (P) Ltd. and M/s. Ratna Housing of which he had acted as agent were furnished along with the return of income filed by him and he was not aware of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have heard both the parties and perused the material on record. In our opinion, the observation of the CIT(A) is not proper. When the amount is included in Form No. 26AS the CIT(A) is not proper to hold that the assessee received the amount from M/s. Jana Chaitanya Housing Ltd., and paid to the landlords and the assessee acted only as an agent. The assessee pleaded before us that there was a confirmation letter from M/s. Jana Chaitanya Housing Ltd.. It is the mobilisation advance given to the assessee which is liable for TDS towards land development expenditure. When the assessee undertakes the land development, it cannot be said that the assessee carried out the work without element of profit. Being so, as it is a regular work carried ..... X X X X Extracts X X X X X X X X Extracts X X X X
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